Money is not supposed to buy happiness but according a survey of members of
the “baby boomer” generation, it trumps love, family, friends and time as
the secret to contentment.

In a study of the attitudes of almost 18,000 people over 55 only good health was ranked more highly on a list ingredients of a happy retirement.

More than a quarter of those polled and a third of those nearing retirement singled out having enough money to live comfortably as the most important factor for them, only slightly behind health and well ahead of having a partner or rewarding family life.

But the apparent preoccupation with money is explained by other findings of the study, conducted for the insurer Aviva, which warned that people in their 50s and early 60s have seen the value of their savings plummet in the last year, even amid economic recovery.

The average savings pot held by someone within a decade of pension age has dropped by 22 per cent to £9,653, the annual Aviva Real Retirement Report found.

Low interest rates and the rising cost of living are blamed for the decline which Aviva calculates could equate to a loss of £19.7 billion worth of savings across the UK.

Four out of 10 people aged 55 to 64 do not save at all – a slight increase on last year’s findings. Meanwhile the amount that those who do save are putting away has fallen by 15 per cent in the last year.

The trend among those approaching retirement is in stark contrast to that among those in their late 60s, 70s and 80s who have increased their savings overall.

But Aviva said that some of the drop among those approaching retirement could be accounted for by people taking advantage of low interest rates to pay off credit card debt.

Overall when asked to single out the “most important ingredient to a happy retirement”, 38 per cent chose good health with 27 per cent opting for having enough money.

Only 17 per cent chose having a soulmate to grow old with and just over one in 10 selected a happy family life.

Meanwhile options such as being active socially, having time for interests and helping others barely registered.

When the findings were broken down by different age groups or income levels, money consistently came second only to health.

Among those aged between 55 and 64 it was cited by 32 per cent as the most important factor.

But a separate survey of grandparents by the International Longevity Centre UK think-tank found that one in seven are preparing to dip into their savings or investments to help pay their grandchildren’s university tuition fees.

The Telegraph Investor

Editor's comment:

Priced to be great value for new investors and those with large portfolios.